EBRD - The Times Of Central Asia

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EBRD

EBRD Invests $125 Million in Kazakhstan Railway Operator Eurobond

The European Bank for Reconstruction and Development is investing up to $125 million in a Eurobond issue by Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ). The bond, with a total value of up to $1 billion, was listed on the London Stock Exchange, Kazakhstan Stock Exchange, and Astana International Exchange. The EBRD’s investment will help modernize passenger stations across Kazakhstan, supporting improvements in safety and operational performance. The upgraded stations are expected to offer higher throughput capacity, modern lighting, and significant enhancements for passengers with disabilities. According to the Kazakh Ministry of Transport, a large-scale reconstruction and modernization program covering 124 railway stations nationwide began in 2025. The initiative aims to improve convenience and accessibility for all passengers, including those with disabilities, and to bring Kazakhstan’s railway infrastructure in line with international quality and safety standards. Additional infrastructure upgrades financed by the bond will take place along the Trans-Caspian Corridor and are expected to support more sustainable rail transportation between Europe and Asia. The EBRD will also mobilize technical cooperation funds to help KTZ adopt international standards in passenger rail services, including measures to strengthen cybersecurity. KTZ owns and operates a 16,400-kilometer railway network and manages more than 1,700 locomotives, 46,800 freight cars, and 2,300 passenger cars. In the first quarter of 2026, KTZ transported approximately 3.2 million passengers. KTZ also transported 64.5 million tons of cargo in the first quarter of 2026, an increase of 360,000 tons compared to the same period last year. Domestic shipments accounted for 40.8 million tons, while exports totaled 23.7 million tons, up 2.2%.

Energy Transition

Kazakhstan Launches QaJET Investment Platform for Just Energy Transition

Kazakhstan has announced the launch of the QaJET (Just Energy Transition) investment platform, supported by the European Bank for Reconstruction and Development (EBRD), to attract international financing and accelerate the decarbonization of its economy. A corresponding memorandum was signed on April 23 during the Regional Environmental Summit in Astana. Signatories included Energy Minister Yerlan Akkenzhenov, Minister of Ecology and Natural Resources Yerlan Nysanbayev, and EBRD Managing Director for Central Asia and Mongolia Hüseyin Özhan. The QaJET platform reflects Kazakhstan’s ambition to accelerate the transition to clean energy through a large-scale expansion of renewable energy capacity. According to current plans, the country aims to commission 10 GW of new green capacity by 2035. According to EBRD estimates, achieving these targets will require approximately $20 billion in investment from both public and private sources. This is expected to reduce greenhouse gas emissions by more than 20 million tonnes annually, equivalent to roughly 7% of the country’s energy-related emissions. The creation of the platform is of strategic importance for Kazakhstan, whose economy remains highly carbon-intensive and heavily dependent on coal-fired power generation. At the request of the Kazakh government, the EBRD participated in developing the QaJET concept and will continue to coordinate its implementation with national and international partners. The platform is also intended to support Kazakhstan’s international climate commitments, including achieving carbon neutrality by 2060 and reducing greenhouse gas emissions by up to 25% by 2030 compared to 1990 levels. QaJET is expected not only to reduce emissions but also to strengthen energy security, enhance economic competitiveness, and promote the development of local high-tech manufacturing in the renewable energy sector. Key areas of cooperation within the platform include expanding renewable energy capacity, modernizing power grids and energy storage systems, electrifying businesses and households, and supporting a just transition, technology transfer, and the development of research and innovation capacity. Authorities expect QaJET to become the central mechanism for coordinating climate finance, bringing together international financial institutions, donors, private investors, and the government to accelerate Kazakhstan’s energy transition.

Low-Carbon Transition

Kazakhstan and EBRD Strengthen Cooperation on Climate Agenda

Kazakhstan intends to expand cooperation with the European Bank for Reconstruction and Development (EBRD) in the field of climate policy and the transition to a low-carbon economy. Minister of Ecology and Natural Resources Yerlan Nyssanbayev held talks with EBRD Managing Director for Climate Strategy and Delivery Gianpiero Nacci. Following the meeting, the parties confirmed their intention to strengthen their partnership in advancing the climate agenda and achieving carbon neutrality. Kazakhstan has set a target of reaching carbon neutrality by 2060 and has adopted an updated Nationally Determined Contribution (NDC 3.0), which requires a 17% reduction in greenhouse gas emissions by 2035 compared to 1990 levels. With EBRD support, several projects are already underway in the country, including efforts to reduce methane emissions in the wastewater treatment sector and to improve the emissions trading system. These measures are aimed at developing the carbon market and enhancing its efficiency. Kazakhstan is also developing "Qajet," a country platform for energy transition, to help coordinate climate financing and identify priority projects. The energy sector, the largest source of emissions, is expected to be its main focus. Kazakhstan and the EBRD plan to continue expanding their cooperation, focusing on the implementation of practical projects aimed at sustainable, low-carbon development.

EBRD

Tajikistan to Receive Nearly €50 Million from the EBRD to Reduce Electricity Losses

The European Bank for Reconstruction and Development (EBRD) will provide Tajikistan with a loan and grant package totalling approximately €50 million to help reduce electricity losses in two regions of the country. According to the Ministry of Finance, total financing amounts to €49.6 million, including €28 million in loans, with the remainder provided as a grant. The loan terms are highly concessional. The interest rate is set at 0.5% per annum plus Euribor, meaning a fixed margin is added to the benchmark rate, which fluctuates based on market conditions. For example, if Euribor stands at 0.2% at the time of disbursement, the total interest rate would be 0.7%. The loan will be repaid over 20 years. During the first six years, only interest payments will be required, while the principal will be repaid over the remaining 14 years. Presenting the agreement to parliament, First Deputy Minister of Finance Yusuf Majidi said the primary objective is to reduce energy losses, replace outdated infrastructure, introduce modern metering systems, and improve billing and revenue collection. The project involves modernisation of electricity distribution networks across nine regional branches in the Sughd and Khatlon regions. The need to address electricity losses has also been highlighted by President Emomali Rahmon. In an address to parliament, he cited figures showing that during the first 11 months of 2025, electricity losses totalled 3 billion kWh-500 million kWh less than in the same period a year earlier.

Investment

Tajikistan’s Reliance on External Funding for State Investment Projects Is Growing

Tajikistan continues to implement a large-scale state investment programme. International financial institutions play a key role in financing these projects, however, while the government's own contribution remains limited. According to data from the State Committee on Investment and State Property Management, 82 state investment projects are currently under way in the country The total value of ongoing initiatives is estimated at approximately $4.67 billion. Of these, 55 projects are being implemented on a grant basis, five through loans, and another 22 have mixed financing. About $3 billion has already been allocated for procurement, works, and services related to the implementation of these projects. However, more than 70% of the funding is provided by just three international institutions. The World Bank remains the largest donor, contributing $1.725 billion (36.9%). It is followed by the Asian Development Bank with $914.7 million (19.5%) and the European Bank for Reconstruction and Development (EBRD) with $658.1 million (14.1%). Other investors include the Islamic Development Bank ($207.9 million), the Chinese government ($194.9 million), the Asian Infrastructure Investment Bank ($142.5 million), the German Development Bank ($129.3 million), and the European Investment Bank ($114.8 million). Against the backdrop of extensive external financing, Tajikistan’s own contribution remains small. The state is investing approximately $151.2 million, accounting for only 3.2% of the total. This means that the implementation of key infrastructure and social projects largely depends on international donors and lenders. At the same time, in 2025 Tajikistan managed to significantly increase capital inflows. Foreign investment reached approximately $7 billion, rising by nearly $2 billion (35.1%) compared with the previous year. The authorities hope to sustain this momentum by improving the investment climate, including through legislative updates. A key step was the adoption on May 14, 2025, of a new version of the law “On Investments and the Promotion of Investment Activity,” aimed at increasing the country’s attractiveness to international partners. The current development model allows Tajikistan to implement large-scale projects that would be difficult to carry out relying solely on domestic resources. However, this financing structure also increases dependence on external sources, making the economy more sensitive to the conditions set by international institutions and the global financial environment.

Pharmaceuticals

EBRD Provides €20 Million Loan to Expand Uzbekistan’s Pharmaceutical Production

Uzbekistan is taking further steps to strengthen its pharmaceutical industry and healthcare system through new investment and sector reforms aimed at reducing reliance on imported medical products. The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to €20 million to its long-term client Samarkand England Eco-Medical (SEEM) and its sister company, Bayan Medical. Both companies produce intravenous solutions, including sodium chloride, glucose, and amino acid infusions, as well as generic and specialized medicines in tablet and capsule form. The financing will support the installation of new production lines at SEEM, enabling the company to expand manufacturing of in-glass intravenous solutions, antibiotics, syrups and suspensions, medical-grade water, nasal sprays, suppositories, and ointments. Part of the funds will also be allocated to modernizing Bayan Medical’s facilities, including energy-efficiency upgrades and the installation of a blow-fill-seal ampoule production line and other specialized equipment. The companies are also expected to restructure their balance sheets as part of the project. The investment comes at a time when approximately 75% of medical goods used in Uzbekistan are imported. Expanding domestic production capacity is intended to promote localization, strengthen supply security, and align manufacturing standards with international requirements. The project also includes social and workforce components. Bayan Medical plans to introduce internship opportunities for university graduates, expand professional training programs for employees, and create new jobs, including positions accessible to people with disabilities. To date, the EBRD has invested nearly $6.9 billion (€5.8 billion) in Uzbekistan across 205 projects, the majority of which have supported private sector development. Uzbekistan has been the largest recipient of EBRD funding in Central Asia for six consecutive years, reflecting sustained economic reforms and investor engagement. Healthcare indicators point to broader structural progress. According to the 2024 Health Care Index published by CEOWORLD magazine, Uzbekistan ranks first in Central Asia and 64th globally, with a score of 36.26. Kazakhstan ranks 78th, and Turkmenistan 95th. Data from the World Health Organization and the World Bank indicate that Uzbekistan’s Universal Health Coverage service index rose from the mid-50s in 2000 to the mid-70s by 2021, suggesting expanded access to essential medical services. Authorities aim to further increase coverage by 2027 while reducing out-of-pocket healthcare spending through strengthened primary care systems and clearer guarantees of publicly funded services.